Warner Bros. Discovery, the media conglomerate formed by the merger of WarnerMedia and Discovery in 2022, is facing financial difficulties that may lead to the sale of its video game division. According to reports from Financial Times, senior management, including CEO David Zaslav, are considering selling off various „smaller assets“ to avoid a complete corporate breakup, which has been referred to as the „nuclear option.“
One of the potential assets on the chopping block is Warner Bros. Discovery’s video game division, which includes popular franchises such as Mortal Kombat and transmedia brands like DC and Harry Potter. Despite the company’s previous success in the gaming industry, recent releases like MultiVersus and Suicide Squad have underperformed, leading to concerns about the division’s profitability.
This is not the first time that Warner Bros. Games has been up for potential sale. In 2020, when Warner Bros. was still owned by AT&T, companies like Microsoft and Take-Two expressed interest in acquiring the interactive division. A potential deal at that time was estimated to be worth as much as $4 billion, highlighting the value of Warner Bros. Games in the market.
The uncertainty surrounding the potential sale of Warner Bros. Games has also had an impact on its development studios. For example, NetherRealm Studios, known for the Mortal Kombat series, shifted its focus to a reboot of the original Mortal Kombat game instead of working on a sequel to Injustice following the rumors of a sale in 2020.
Despite the interest from companies like Microsoft in acquiring Warner Bros. Games, a sale never materialized, and the division has remained intact. However, leaked documents from 2023 revealed that Microsoft was still interested in acquiring titles like Gotham Knights, Mortal Kombat 1, and Suicide Squad for its Game Pass subscription service.
If Warner Bros. Games were to be sold off now, the valuation of the division remains uncertain due to the mixed performance of recent releases and the upcoming Wonder Woman title from Monolith Productions. The potential sale of the video game division could be a strategic move for Warner Bros. Discovery to streamline its operations and focus on more profitable ventures in the future.
In conclusion, Warner Bros. Discovery’s financial challenges have put its video game division in the spotlight as a potential asset for sale. The history of interest from major players in the gaming industry, coupled with recent performance issues, has raised questions about the future of Warner Bros. Games and its iconic franchises. As the company navigates its financial straits, the decision to sell off assets like the video game division may be a necessary step to ensure its long-term viability in the ever-evolving media landscape.